Avoidance of reported earnings decreases and losses: evidence from Malaysia / Norman Mohd Saleh, Takiah Mohd Iskandar and Mohd Mohid Rahmat
The study investigates the existence of earnings management practices by companies listed in the KLSE. Prior studies suggest that managers manage earnings to avoid reporting losses and earnings decreases. This study tests the effects of size and code of corporate governance on the incidence of manag...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Accounting Research Institute (ARI) & Faculty of Accountancy
2005
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| Subjects: | |
| Online Access: | https://ir.uitm.edu.my/id/eprint/290/ |
| _version_ | 1848802309244452864 |
|---|---|
| author | Mohd Iskandar, Takiah Rahmat, Mohd Mohid |
| author_facet | Mohd Iskandar, Takiah Rahmat, Mohd Mohid |
| author_sort | Mohd Iskandar, Takiah |
| building | UiTM Institutional Repository |
| collection | Online Access |
| description | The study investigates the existence of earnings management practices by companies listed in the KLSE. Prior studies suggest that managers manage earnings to avoid reporting losses and earnings decreases. This study tests the effects of size and code of corporate governance on the incidence of managing earnings to avoid reporting earnings decrease and losses by Malaysian companies. Using the discontinuity test and level of smoothness
test around zero reported earnings, this study finds a significant incidence of
companies reporting positive earnings while avoiding showing losses. This
finding is consistent with that of previous studies. The study also provides
evidence that earnings management practices were reduced following the
introduction of a code of corporate governance by the Malaysian government
in 2001. |
| first_indexed | 2025-11-14T21:21:18Z |
| format | Article |
| id | uitm-290 |
| institution | Universiti Teknologi MARA |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T21:21:18Z |
| publishDate | 2005 |
| publisher | Accounting Research Institute (ARI) & Faculty of Accountancy |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | uitm-2902019-03-25T08:00:19Z https://ir.uitm.edu.my/id/eprint/290/ Avoidance of reported earnings decreases and losses: evidence from Malaysia / Norman Mohd Saleh, Takiah Mohd Iskandar and Mohd Mohid Rahmat mar Mohd Iskandar, Takiah Rahmat, Mohd Mohid Malaysia Kuala Lumpur. KLSE The study investigates the existence of earnings management practices by companies listed in the KLSE. Prior studies suggest that managers manage earnings to avoid reporting losses and earnings decreases. This study tests the effects of size and code of corporate governance on the incidence of managing earnings to avoid reporting earnings decrease and losses by Malaysian companies. Using the discontinuity test and level of smoothness test around zero reported earnings, this study finds a significant incidence of companies reporting positive earnings while avoiding showing losses. This finding is consistent with that of previous studies. The study also provides evidence that earnings management practices were reduced following the introduction of a code of corporate governance by the Malaysian government in 2001. Accounting Research Institute (ARI) & Faculty of Accountancy 2005-07 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/290/1/AJ_NORMAN%20MOHD%20SALEH%20MAR%2005.pdf Mohd Iskandar, Takiah and Rahmat, Mohd Mohid (2005) Avoidance of reported earnings decreases and losses: evidence from Malaysia / Norman Mohd Saleh, Takiah Mohd Iskandar and Mohd Mohid Rahmat. (2005) Malaysian Accounting Review <https://ir.uitm.edu.my/view/publication/Malaysian_Accounting_Review.html>, 4 (1). pp. 25-37. ISSN 1675-4077 https://mar.uitm.edu.my/ |
| spellingShingle | Malaysia Kuala Lumpur. KLSE Mohd Iskandar, Takiah Rahmat, Mohd Mohid Avoidance of reported earnings decreases and losses: evidence from Malaysia / Norman Mohd Saleh, Takiah Mohd Iskandar and Mohd Mohid Rahmat |
| title | Avoidance of reported earnings decreases and losses: evidence from Malaysia / Norman Mohd Saleh, Takiah Mohd Iskandar and Mohd Mohid Rahmat |
| title_full | Avoidance of reported earnings decreases and losses: evidence from Malaysia / Norman Mohd Saleh, Takiah Mohd Iskandar and Mohd Mohid Rahmat |
| title_fullStr | Avoidance of reported earnings decreases and losses: evidence from Malaysia / Norman Mohd Saleh, Takiah Mohd Iskandar and Mohd Mohid Rahmat |
| title_full_unstemmed | Avoidance of reported earnings decreases and losses: evidence from Malaysia / Norman Mohd Saleh, Takiah Mohd Iskandar and Mohd Mohid Rahmat |
| title_short | Avoidance of reported earnings decreases and losses: evidence from Malaysia / Norman Mohd Saleh, Takiah Mohd Iskandar and Mohd Mohid Rahmat |
| title_sort | avoidance of reported earnings decreases and losses: evidence from malaysia / norman mohd saleh, takiah mohd iskandar and mohd mohid rahmat |
| topic | Malaysia Kuala Lumpur. KLSE |
| url | https://ir.uitm.edu.my/id/eprint/290/ https://ir.uitm.edu.my/id/eprint/290/ |